Assessment Of A Country As Production Location

Question 1

What impact does level of disposable income have in decided whether to produce in a country

Answer 1

Economic growth in economy as a whole suggests that incomes are rising. It is therefore reasonable to expect that demand may increase
Observation of current spending trends and existing products that are selling is essential for businesses

Question 2

What impact does the ease of doing business have in decided whether to produce in a country

Answer 2

The ease of doing business was created by the world bank and looks at a range of factors that make it easier to start a business
Time and cost of capital
Dealing with regulations 
Ease employees can be hired 
Cost and time to impost and export 
Level of tax

Question 3

What impact does infrastructure have in decided whether to produce in a country

Answer 3

Vital to be able access supplies, distribute goods and communicate
Weak infrastructure effects effective transport and communication

Question 4

What impact does political stability have in decided whether to produce in a country

Answer 4

Need political stability
Countries that have history of instability don’t attract business
Corruption is a feature of lots of emerging countries

Question 5

What impact does exchange rates have in decided whether to produce in a country

Answer 5

They can be a source of uncertainty
Selling exports in a foreign market that has a undervalued exchange rate can be a problem because of cheaper domestic competitors